User Account

All Pages

What result when partnership sells the building on January

Assignment Help Accounting Basics
Reference no: EM132605620

Question - C and D each contribute $300,000 upon formation of a limited partnership. C is a general partner and D is a limited partner. The partnership purchases a commercial building on leased land for $600,000 and elects straight line cost recovery. Assume that the property has a 10 year recovery period. The CD partnership agreement allocates all items of income and loss equally with the exception of the cost recovery deductions, which are allocated entirely to D. Assume that both partners are unconditionally obligated to restore a deficit to their capital accounts upon a liquidation of the partnership.

(a) Assume that apart from cost recovery deductions, the partnership's rental income is equal to its operating expenses. What must the partner's respective capital account balances be at the end of year one if the allocation of cost recovery deductions is to have economic effect?

(b) Assume the partnership sells the building on January 1 of year two and immediately liquidates. How must the proceeds be distributed if the building is sold for $540,000? $600,000?

(c) Assume the partnership agreement further provides that gain on the disposition will be allocated to D to the extent of the cost recovery deductions specially allocated to her. What result when the partnership sells the building on January 1 of year two for $600,000?

Reference no: EM132605620

Questions Cloud

What expect about the earning pattern and dividend : Directors are from Chan's family, you are drafting the financial statements for the year. What would you expect them about the earning pattern and dividend?
What result to c, d, and cd : What result to C, D, and CD, if C worked for partnership and required to be paid $60,000 per year for her services regardless of the income of the partnership
About the idealized bodies represented : Prehistoric, Ancient Mesopotamian, and Egyptian representations of humans. Think about the idealized bodies represented in contemporary visual culture.
Calculate devo whippet bookings for of this year : Below is two years of quarterly data for Devo Whippet Corp. Calculate Devo Whippet's Bookings for Q4 of This Year? Unearned Revenue
What result when partnership sells the building on January : C and D each contribute $300,000 upon formation of a limited partnership. What result when the partnership sells building on January 1 of year two for $600,000
Business decision making assignment : Business Decision Making Assignment Help and Solution - Muscat University - Prepare a trial balance for the year ended 31 December 2019 2019
How the internet is changing businesses around the world : i) Explain how the Internet is changing businesses around the world.
Prepare debt service fund and government-wide entries : Prepare debt service fund and government-wide entries in general journal form to reflect, as necessary, the following information and transactions
Prepare the Cash Flows from Operating Activities section : Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use minus sign to indicate cash out flows

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd